Casey’s General Stores Inc (NASDAQ:CASY) delivers mixed results

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Casey’s General Stores Inc (NASDAQ:CASY) stock fell 6.23% (As on Dec 8, 10:53:58 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. Casey’s has announced the pending acquisition of 40 stores from Pilot Corporation, primarily in the Knoxville, TN market. Due to the recently announced 40-store acquisition of Pilot convenience stores, the Company now expects to add approximately 225 units during fiscal 2022, up from the previously disclosed 200 units. This pending transaction is expected to be EBITDA accretive in fiscal 2022. Total operating expenses are expected to increase in the high-teen percentages, versus the previously disclosed mid-teens percentages, due to the additional units as well as elevated credit card fees brought on by higher retail fuel prices. The impact to the second half of the fiscal year will be an approximate 18-20% increase in the third quarter and an 11-13% increase in the fourth quarter. Interest expense is expected to be approximately $55 million versus the previously disclosed $50 million, depreciation and amortization is expected to be approximately $310 million compared to the previously disclosed $300 million, and the purchase of property and equipment is expected to be approximately $400 million versus the $500 million previously disclosed as the Company reduced new store construction due to the increase in acquisition activity. The Company has maintained the same-store fuel and inside sales mid-single digit percentage increase that was previously disclosed. At October 31, the Company had approximately $787 million in available liquidity, consisting of approximately $312 million in cash and cash equivalents on hand and $475 million in undrawn borrowing capacity on existing lines of credit.

CASY in the second quarter of FY 22 has reported the adjusted earnings per share of $2.59, missing the analysts’ estimates for the adjusted earnings per share of $2.92. The company had reported the adjusted revenue of $3.26 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue by 3.46%.

Additionally, the Company has $300 million remaining under its existing share repurchase program which expires in April 2022. There were no repurchases made against that authorization in the second quarter. The company has declared a quarterly dividend of $0.35 per share. The dividend is payable February 15, 2022 to shareholders of record on February 1, 2022.

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